Notes to Accounts of Ashiana Ispat Ltd.

Mar 31, 2015

1. Defined Benefit Plan

The Present Value of obligation of Gratuity is determined based on actuarial valuation.

2. Fixed Assets

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in schedule II, except in respect of certain assets as disclosed in accounting policy on Depreciation, amortisation and depletion. Accordingly the unamortisation carrying value is being depreciated/ amortisation over the revised/ remaining useful lives. The written down value of fixed assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of profit and loss account amounting to Rs.9,85,642/-

3. Related paraty discloures as per Accounting Standard

(a) Related Parties and their relationships (I) Related Companies and Other Juristic Entities

M/s Kamdhenu Steels & Alloys Ltd.

M/s Ashiana Commodities & Derivatives P Ltd M/s I Dreams Impex Pvt. Ltd.

M/s Ashiana Fincap Pvt Ltd

M/s Saurabh Gases

M/s Ashiana Manufacturing India Ltd.

Chandi Prasad Sukhbir Singh Jain (HUF)

Naresh Chand (HUF)

Puneet Jain (HUF)

Neeraj Kumar Jain HUF Sanjay Kumar Jain HUF

(ii) Key Managerial Personnel Naresh Chand (Managing Director)

Neeraj Kumar Jain (Whole Time Director)

Sanjay Kumar Jain (Whole Time Director)

Puneet Jain (Whole Time Director)

(iii) Relatives of Key Managerial Personnel

Disha Jain Divya Jain Kiran Mala Jain Kritika Jain Naman Jain Renu Jain Sudha Jain Swati Jain Tripti Agarwal Uma Jain Vandana Jain

The Company is manufacturing TMT Bars and Ingots, but M.S. Ingots is used as raw material of TMT Bars I.e. captively consumed, as both the product are inter related cover in single segment of Iron & Steel. Hence, Accounting Standard -17 "Segment Reporting" issued by ICAI is not applicable on the Company.

4. Provisions for Deferred Tax

Deferred Tax Assets & Liabilities in accordance with the AS-22 "Accounting for Taxes on Income" issued by the Council of ICAI.The major component of deferred tax assets and deferred tax liabilities as at 31st March 2015 subject to the consideration of prudency of timing differences are shown in note no 4.

5. The Company has not received information from vendors regarding their status under the micro, small and medium 2006 and hence disclosures enterprises development Act, relating to amounts unpaid as at the year end together with interest paid/payable under this Act, have not been given.

6. Contingent Liabilities : Claims against the company / disputed demands not acknowledged as debts.

Provisions invlolving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past event and it is pobable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes as given below:-

Particulars 2014-15 2013-14

Sales Tax 0 1545392

Income Tax 17133470 89463795

Excise Duty 102000 102000

Service Tax 3855348 3855348

7. Financial figures are rounded off to nearest rupees and figures have been regrouped/rearranged/reclassified whereever necessary

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Mar 31, 2014

Note 1 Segment Reporting

The Company is manufacturing TMT Bars and Ingots, but M.S. Ingots is used as raw material of TMT Bars l.e. captively consumed, as both the product are interrelated cover in single segment of Iron & Steel. Hence, Accounting Standard -17 "Segment Reporting" issued by ICAI is not applicable on the Company.

Note 2 Provisions for Deferred Tax

Deferred Tax Assets & Liabilities in accordance with the AS-22 "Accounting for Taxes on Income" issued by the Council of ICAI.

The major component of deferred tax assets and deferred tax liabilities as at 31st March 2014 subject to the consideration of prudency of timing differences are shown in note no 4. Note 31 The Company has not received information from vendors regarding their status under the micro, small and medium enterprises development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act, have not been given.

Note 3 Contingent Liabilities :

Claims against the company / disputed demands not acknowledged as debts.

Provisions invlolving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past event and it is pobable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the

Amount in Rs. Amount in Rs. Particulars 2013-14 2012-13

Sales Tax 1545392.00 2487462.00

Income Tax 89463795.00 83075016.00

Excise Duty 102000.00 102000.00

Service Tax 3855348.00 3855348.00

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Mar 31, 2013

Note 1 Segment Reporting

The Company is manufacturing TMT Bars and Ingots, but M.S. Ingots is used as raw material of TMT Bars i.e. captively consumed, as both the product are inter related cover in single segment of Iron & Steel. Hence, Accounting Standard -17 "Segment Reporting" issued by ICAI is not applicable on the Company. Note 30 Provisions for Deferred Tax

Deferred Tax Assets & Liabilities in accordance with the AS-22 Accounting for Taxes on Income" issued by the Council of ICAI. The major component of deferred tax assets and deferred tax liabilities as at 31st March 2013 subject to the consideration of prudency of timing differences are shown in note no 4. Note 31 The Company has not received information from vendors regarding their status under the micro, small and medium enterprises development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act, have not been given. Note 32 Contingent Liabilities : Claims against the company / disputed demands not acknowledged as debts.

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past event and it is pobable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes as given below:-

Amount in Rs. Amount in Rs.

Particulars 2012-13 2011-12

Sales Tax 2487462.00 6290807.00

Income Tax 83075016 78554876

Excise Duty 102000 317000

Service Tax 3855348 3855348

Note 2 Financial figures are rounded off to nearest rupees and figures have been regrouped/rearranged/reclassified where ever necessary.

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Mar 31, 2012

Note 1 :Segment Reporting

The Company is manufacturing TMT Bars and Ingots, but M.S. Ingots is used as raw material of TMT Bars I.e. captively consumed, as both the product are inter related cover in single segment of Iron & Steel. Hence, Accounting Standard -17 "Segment Reporting" issued by ICAI is not applicable on the Company.

Note 2 : Provisions for Deferred Tax

Deferred Tax Assets & Liabilities in accordance with the AS-22 : “Accounting for Taxes on Income" issued by the Council of ICAI. The major component of deferred tax assets and deferred tax liabilities as at 31st March 2012 subject to the consideration of prudency of timing differences are shown in note no 4.

Note 3:The Company has not received information from vendors regarding their status under the micro, small and medium enterprises development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act, have not been given.

Note 4: Contingent Liabilities : Claims against the company / disputed demands not acknowledged as debts.

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes as given below:-

Note 5 : Financial figures are rounded off to nearest rupees and figures have been regrouped/ rearranged/ reclassified whereever necessary.

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Mar 31, 2011

A. Financial figures are rounded off to nearest rupees.

B. 1. Contingent Liabilities : Claims Against the Company/ Disputed demands not acknowledged as debts.

Rs.in Lacs Particulars Current Year Previous Year

Sales Tax 62.90 55.22

Income Tax 789.55 5.13

Excise Duty 1.02 3.17

Service Tax 38.55 0

C. NOTES

1. Balance under the heads Unsecured Loans, Sundry Creditors, Sundry Debtors, Advances etc. as on 31.03.2011 aresubjectto confirmation. The amount of Sundry Debtors Rs.323100226 /- (P.Y.249488274 /-) are arrived after netting of advance from Debtors Rs.42599558 /- (P.Y. Rs. 30400876 /-) and Sundry Creditors Rs 215935026 /- (P. Y.Rs.222151848/-)are arrived after netting of advance from Suppliers Rs 21021834/-(P. Y. Rs. 12213337/-).

2. Liability on account of Gratuity is provided for on the basis of actuary valuation made at the end of the Financial year. As per Actuary Valuation

3. Advances Recoverable in cash or kind or for value to be received includes amount Rs.182.72 Lacs deposited against disputed cases.

4. Additional Information Pursuant to the provisions of paragraphs (3) to (4D) of Part II of Schedule VI of the Companies Act, 1956.

Note :-

Installed Capacity (Certified & reinstated by the Management and not verified by the auditors being a technical matter) Licenced Capacity not applicable.

Note

Quantity of turnover of "CTD Bars and Waste Scrap" includes captive consumption waste & scrap 2421.175 MT. Previous year was 1335.275 MT.

Quantity of Opening Stock and Closing Stock of CTD Bar include 9.09 MT of Form V of Excise Register Stock. Quantity of turnover of M.S. Ingot and Runner / Risers includes captive consumption of M.S. Ingot & Runner / Risers 13944.555 & 967.660 MT respectively, previous year were 12469.830 MT & 730.715 MT. ¦ I . I . Segment Reporting

The Company is manufacturing CTD Bars and Ingots, but M.S. Ingots is used as raw material! of CTD Barsl.e. captivity consumed, as both the product are inter related cover in single segment of Iron & Steel. Hence, Accounting Standard -17 "Segment Reporting" issued by ICAI is not applicable on the Company.

1 The Cash Flow statement has been prepared in accordance with the requirement of Accounting Standards-3 "Cash Flow Statement" issued by the ICAI.

2 Related Party disclosures as per Accounting Standard -18 are as Follow:

3 Impairment of Assets

There are no indication of overall impairment in assets hence the need to make an estimation of re- coverable amount does not arise.

4 Previous years figures have been regrouped / rearranged wherever necessary to confirm to current year figures & in this schedule and the same are appearing in brackets .

5 The Company has not received information from vendors regarding their status under the micro, Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

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Mar 31, 2010

A. Contingent Liabilities : Disputed liabilities not acknowledged as debts by the Company.

Rs.in Lacs

Particulars Current Year Previous Year

Sales Tax 55.22 0

Income Tax 5.13 5.13

Excise Duty 3.17 1.02

Service Tax 0 20.73

B. NOTES

1. Balance under the heads Unsecured Loans, Sundry Creditors, Sundry Debtors, Advances etc. as on 31.03.2010 are subject to confirmation. The amount of Sundry Debtors Rs 249488274/- (P.Y.263761910/-) are arrived after netting of advance from Debtors Rs 30400876/- (RY. Rs. 39531136/-) and Sundry Creditors Rs 222151848 /- (P.Y.Rs. 135187548/-) are arrived after netting of advance from Suppliers Rs 12213337/- (P.Y. Rs. 13031037/-). Advance include Rs. 4075093 for excise duty deposit vide RG 23A under protest.

2. Liability on account of Gratuity is provided for on the basis of actuary valuation made at the end of the Financial year.

3 Additional Information Pursuant to the provisions of paragraphs (3) to (4D) of Part II of Schedule VI of the Companies Act, 1956.

4 Segment Reporting

The Company is manufacturing CTD Bars and Ingots, but M.S. Ingots is used as raw material of CTD Bars I.e. captively consumed, as both the product are inter related cover in single segment of Iron & Steel. Hence, Accounting Standard -17 "Segment Reporting" issued by ICAI is not applicable on the Company.

5 The Cash Flow statement has been prepared in accordance with the requirement ofAccountingStandards-3 "Cash Flow Statement" issued by the ICAI.

6 Related Party disclosures as per Accounting Standard -18 are as Follow: (a) Related Parties and their relationships

(I) Related Companies and Other Juristic Entities (ii) Key Managerial Personnel

M/s Kamdhenu Steels & Alloys Ltd. Naresh Chand (Managing Director)

M/s Ashiana Fincap P Ltd Neeraj Kumar Jain (Managing Director Works)

M/s Ashiana Commodities & Derivatives P Ltd Sanjay Kumar Jain (Whole Time Director)

Chandi Prasad Sukhbir Singh Jain (HUF) Puneet Jain (Whole Time Director)

Naresh Chand (HUF)

Puneet Jain (HUF)

V.K.Jain (HUF)

Neeraj Kumar Jain HUF

Sanjay Kumar Jain HUF

7 Impairment of Assets

There are no indication of overall impairment in assets hence the need to make an estimation of re-coverable amount does not arise.

8 Previous years figures have been regrouped/rearranged wherever necessary to confirm to current year figures & in this schedule and the same are appearing in brackets.

9 The Company has not received information from vendors except Maa Giriraj Ispat Pvt.Ltd. regarding their status under the micro, Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

10 The company was subjected to search by the Income Tax Authorities during the year ended 31st March, 2009 The proceeding is still under process. Income Tax duty laibility, if any upon conclusion of search proceedings shall be provided for in the year in which the assessment by concerned authority is completed

Signature to Schedule "1" To "21" In term of our report of even date.